WallStSmart

Electromed Inc (ELMD)vsMerck & Company Inc (MRK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 91560% more annual revenue ($65.77B vs $71.75M). ELMD leads profitability with a 14.1% profit margin vs 13.6%. ELMD appears more attractively valued with a PEG of 0.35. ELMD earns a higher WallStSmart Score of 66/100 (B-).

ELMD

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 5.3Quality: 7.8
Piotroski: 5/9Altman Z: 5.57

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ELMDSignificantly Overvalued (-63.4%)

Margin of Safety

-63.4%

Fair Value

$15.46

Current Price

$37.69

$22.23 premium

UndervaluedFair: $15.46Overvalued
MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ELMD6 strengths · Avg: 9.2/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

EPS GrowthGrowth
66.7%10/10

Earnings expanding 66.7% YoY

Altman Z-ScoreHealth
5.5710/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.6%9/10

Every $100 of equity generates 21 in profit

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Revenue GrowthGrowth
18.4%8/10

18.4% revenue growth

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

Areas to Watch

ELMD2 concerns · Avg: 3.5/10
P/E RatioValuation
32.2x4/10

Premium valuation, high expectations priced in

Market CapQuality
$312.08M3/10

Smaller company, higher risk/reward

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ELMD

The strongest argument for ELMD centers on PEG Ratio, EPS Growth, Altman Z-Score. Revenue growth of 18.4% demonstrates continued momentum. PEG of 0.35 suggests the stock is reasonably priced for its growth.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.

Bear Case : ELMD

The primary concerns for ELMD are P/E Ratio, Market Cap.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

ELMD profiles as a growth stock while MRK is a value play — different risk/reward profiles.

ELMD carries more volatility with a beta of 0.52 — expect wider price swings.

ELMD is growing revenue faster at 18.4% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

ELMD scores higher overall (66/100 vs 50/100) and 18.4% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Electromed Inc

HEALTHCARE · MEDICAL DEVICES · USA

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high-frequency chest wall oscillation (HFCWO) therapy in lung care for patients of all ages in the United States. and internationally. The company is headquartered in New Prague, Minnesota.

Merck & Company Inc

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.

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